ECB Keeps Euro Zone Rates Unchanged
No Change To Rates, Yet June Rate Cut Likely
The European Central Bank (ECB) kept interest rates on hold on April 20, 2024, but signaled that a rate cut is likely in June.
The ECB's decision comes as the euro zone economy slows and inflation remains low. The bank has been under pressure from some governments and businesses to cut rates to boost growth.
In a statement, the ECB said it expects to cut rates by 10 basis points in June. The bank also said it will continue to provide liquidity to the euro zone banking system through its quantitative easing program.
The ECB's decision was widely expected by economists. However, some analysts believe that the bank may be underestimating the risks of inflation. Inflation in the euro zone has been rising in recent months, and some economists believe that it could reach the ECB's target of 2% by the end of the year.
The ECB's next meeting is scheduled for June 6-7, 2024.
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